Rendering of the plane they hope to acquire
NEW YORK – Baltia Air Lines, Inc., doing business as US Global Airways, has entered into a stock purchase agreement with AerLine Holdings, for the purchase of the issued and outstanding shares of capital stock of Songbird Airways, Inc. for $6.5 million.
Songbird has an FAA certificate allowing it to operate commercial passenger service. The stock purchase by US Global would bring the airline one giant step closer to operating regularly scheduled service from Stewart International Airport near Newburgh.
The acquisition is expected to close in mid-to late October, according to a recent US Securities and Exchange Commission filing.
Baltia has previously made a good-faith $1 million deposit with a third party escrow agent with the funds released to AerLine on September 1.
Pursuant to the terms of the agreement, prior to the closing date, US Global would enter into an aircraft lease agreement for one B737-400 aircraft.
US Global, which for months has been renting office space at Stewart, plans service to Europe, Russia, the Middle East and Caribbean, with some flights possibly by the end of the year.
